Noida-based start-up, Oriana Power, specialising in solar energy solutions for industrial and commercial customers, is all set to launch its Initial Public Offering (IPO) for public subscription on Tuesday, August 1. The IPO will be open for three days, concluding on August 3.
Market sources have reported that Oriana Power’s shares are already commanding a premium of Rs 103 in the unlisted market, generating significant interest ahead of the subscription opening. The company has garnered attention in the market, having attracted investments from prominent investors before its IPO.
During the IPO, Oriana Power will offer shares in a price band of Rs 115 to Rs 118 apiece, and investors can bid for 1,200 shares in one lot.
The IPO will consist entirely of fresh equity, amounting to up to 50.5 lakh equity shares, aggregating up to Rs 59.6 crore. The proceeds from the offering will be utilised for various purposes, including working capital requirements, investments in subsidiaries, infrastructure capital expenditure, and other general corporate needs.
As per the Draft Red Herring Prospectus (DRHP), the current shareholding of promoters stands at 83.40 percent. However, after the IPO, their stake in the company will be reduced to 61.40 percent.
The IPO has allocated 50 percent of the public offer for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.
Investors can expect the final allotment of shares to take place on August 8. The company’s shares are likely to be listed on the NSE Emerge platform on August 11.
Corporate Capital Ventures is acting as the lead manager for the IPO, while Skyline Financial Services has been appointed as the registrar to the issue.
Oriana Power has demonstrated strong financial performance, with a consolidated revenue of Rs 137.31 crore for the year ended March 2023, representing a growth of 9.87 percent compared to the previous year’s figure of Rs 124.97 crore. The consolidated profit after tax also soared to Rs 10.93 crore, reflecting a significant year-on-year increase of 57.49 percent from Rs 6.94 crore.
The company specializes in low-carbon energy solutions, including on-site solar project installations (rooftop and ground-mounted systems) and off-site solar farms (open access). Recently, Oriana Power unveiled its corporate brand, TrueRE, indicating its intention to expand into other sources of renewable energy beyond solar.